Does the farm share of the retail food dollar matter. The restaurant industrys share of the food dollar was 25 percent in 1955 and. Farmers share derived from usda, nass agricultural prices, 2017. By selling directly to consumers, farmers retain the value added to their products through various transportation and marketing activities that are usually performed by urbanbased wholesale and retail establishments. Yet, the market is not just about the exchange of vegetables. Each farmers market in kentucky is an independent entity that sets its own rules and guidelines. Farmers receive a smaller share of awayfromhome food dollars roughly 2. Farmers share of retail food dollar national farmers union. Farmers and ranchers play the most valuable role in actually producing the food that is served at holiday dinners, yet they make just pennies on the dollar for their products. Visit to learn more united to grow family agriculture did you know that farmers and ranchers receive only 15. Peoria county farm bureau farmers share of the food dollar. The database is searchable by expenditure categorytotal, food at home, or food away from homefor the food dollar and the food and beverage dollar by year, from 1993 to 2018. Farmtoretail price spread and farm share in food supply chains abares. Farmers share of the retail food dollar beginning farmers.
Second, the importance of food and beverages in the weighting of the consumer price index cpi is smaller. Farmers receive 11 cents of the thanksgiving food dollar. In fact, on average, farmers get 17 cents for every dollar americans spend on food. In 1956 the farmer received 8% of the price of a box of corn flakes, but by 1979, the farmer received only 1. Mar 08, 2018 food costs have risen steadily since the 1980s, while the farmers share of the retail food dollar has plummeted by 50%. Through the mid1970s, farmers received about onethird of consumer retail food expenditures for food eaten at home and away from home, on average. This statistic shows the restaurant industrys share of the food dollar in the united states in 1955, 2014 and 2016. The 1989 farm share of the food dollar averaged 30 cents for every dollar spent in. Farmers markets stimulate local economies americans have long known that farmers markets offer shoppers food thats unrivaled taste and freshness, however, a growing body of research points to the economic benefits of farmdirect marketing. In the early 1970s, the farmers share of the consumer food dollar was 32 to 35%. The breakfast is to provide an opportunity to meet the farmers that raise their food and to provide. The farm share in canada from 1997 to 2010 university of guelph. Farmers share of food dollars drops to record low news.
Another trend is the increase of the share of food expenditures allocated to food consumed away from home. The farmers share of the consumers food dollar by united states. Usda econ service in the 1930s there were close to seven million farmers in the u. Overall, since 2000, the farm share of the retail food dollar has remained under 16 cents. Structural strategies for consumer product companies c onsumer product companies face a challenging combination of rising and volatile input costs, and a pricesensitive consumer. The farmers share did you know that farmers and ranchers receive only 14. Farmers receive 11 cents of the thanksgiving food dollar, nfu. The ers also noted that for every dollar spent in 20 in the u. Farmers overwhelmingly oppose bayer monsanto merger farm aid. Retail food price inflation is addressed in crs report r40545, consumers and food price inflation. When food prices go up for consumers, it doesnt necessarily translate into higher pay for farmers. This 1989 increase in the farm value of the market basket was the largest since 1984. Retail food prices grew faster than the prices farmers received for agricultural commodities, but economic research has not established that concentration has affected these trends over the past 25 years, farmers have received a. Does the farm share of retail produce dollar matter.
According to usda, off farm costs including marketing, processing, wholesaling, distribution and retailing. Farmers market manual national association of city. Publication date 1937 topics food prices, agriculture. They believe that firms in highly concentrated markets may be able to exert market power by raising retail food prices while also depressing prices farmers. The farm share of the retail dollar has trended down since 1993. Pdf there has been renewed interest in the farmers share of retail food sales recently.
These decreasing returns have made smaller farms less economically viable. Structural strategies for consumer product companies. Farmers share of retail food dollar turkey 1 pound retail. From the consumers point of view, the retail price is the most important. Farmers share of retail food dollar did you know that farmers and ranchers receive only 20 cents of every food dollar that consumers spend on food at home and away from home. Business general liability insurance farmers insurance group. Farmer share and fair distribution in food chains from a. Oddly, the usda does not provide an updated illustration of the marketing components from its previous version in 2006. The farm share is the average portion from each dollar of expenditure on food that is. Farmersshareoftheretaildollar statistic for all agricultural products, meat products, and real 2000 per farm net farm income, 192009. Nominal current year data are now available from 1993 to 2018. Nov 21, 2018 farmers and ranchers play the most valuable role in actually producing the food that is served at holiday dinners, yet they make just pennies on the dollar for their products. Nov 21, 2018 the farmers share of the retail food dollar continues its gradual decline from yeartoyear as food companies take in record profits and family farmers sell their farms.
This means when you grocery shop or go to a restaurant, only 17% of what you. This record low follows four years of sharp declines. And the farmers share during the 1930s the farmers share of the consumers food dollar was as low as 32 cents, and in 1940, at the beginning of world war ii, averaged only 40 cents. The group is also working on a regional marketing plan for local valueadded products. Farmers share of food dollar at record low dairy herd. The farmers share of the retail food dollar continues its gradual decline from yeartoyear as food companies take in record profits and family farmers sell their farms. Farmers share of food dollar at alltime low feedstuffs. Because of their market power, corporations can push down the prices paid to farmers without passing on their savings to consumers. Iowa farmers union po box 1883 ames, ia 500101883 email protected. Usda has just issued a revision to its food dollar seriesits graphic explanation of how the u. Discover a wealth of educational materials for farmers, ranchers, ag professionals, community organizers and others who are striving to reconfigure the nations food system so more value stays in foodproducing communities.
Farmers share of food dollar at record low pork business. The impact of these policies can be seen in the drop in the farmers share of the retail dollar. Farmersshareoftheretaildollar statistic for all agricultural products, meat products, and real. Food imports to united states soar under wtonafta model. The food dollar series measures annual expenditures by u. Farmers share of the retaildollar statistic for all agricultural products, meat products, and real 2000 per farm net farm income, 192009. Those farmers who grow fresh tomato varieties receive forty percent of the price to the consumer but farmers supplying tomatoes for canning only get twenty percent of the consumers dollar. As retail grocery prices have increased gradually over time, the share of the average food dollar that americas farm and ranch families receive has dropped. The figure represents a 5 percent decrease from the previous years data and the lowest farm share since usda began reporting the figures in 1993. The national farmers union points out that farmers and ranchers receive only 15. Farmers share of retail food dollar did you know that farmers and ranchers receive only 15.
Farmers share of food dollar at record low drovers. According to usda, offfarm costs, including marketing, processing, wholesaling, distribution and retailing, account for more than 80 cents of every food dollar spent in the united states. Its a simple reality that anyone who comes into contact with you or your employees while youre conducting business can file a claim or lawsuit against you for any number of reasons from physical injuries to wrongful termination. Fueling america through renewable resources biofuels and. Farm share of retail price varies by food groups and individual foods.
The farmers market is a critical piece of the food projects broad vision to create a local food system in boston. Beef and pork values and price spreads explained usda. When adjusted for inflation, in 2009 dollars, the farmers share of the food dollar was 12. During the war period, however, this share increased rapidly to a record high on an annual basis of 53 cents in 1945. Farmtoretail price spread and farm share in food supply chains.
Value redistribution is a major policy con cern, as the public opinion and policymakers perceive that the farmers share of food value is unfairly low e. According to usda, off farm costs including marketing, processing, wholesaling, distribution and retailing account for 80 cents of every food dollar spent in the united. Price is the primary mechanism that links raw farm commodities through the various levels of the market system to the retail food product. The seven seattle farmers markets hosted by the neighborhood farmers market alliance support 9,491 acres of farmland in diversified production. Consumers, for the most part, do not buy food directly from farmers. Evaluating the farmersshareoftheretaildollar statistic. According to the usda, off farm costs including marketing, processing, wholesaling, distribution and retailing. Pdf evaluating the farmersshareoftheretaildollar statistic. Farmers share of retail food dollar ohio farmers union. Farmers markets give you an opportunity to try retailing with limited capital expense.
Stimulate local economies farmers market coalition. For the 15 items nfu tracks for the thanksgiving version, farmers. Nonfarm related marketing associated with the food dollar, i. But when food prices go down, producers say theyre the first ones to see their pay cut.
Farmers markets allow consumers to have access to locally produced, farmfresh food and the opportunity to personally interact with the individuals that produced the food. Consumer food dollar 2012 different story in local food. While farmers were paid less, and consumers paid more, corporate processors recorded windfall profits. Growth in retail sales has equaled 20 percent or more annually since 1990. The difference in the percentage of the retail price which goes to the farmer is striking. There are many drivers fueling this price increase, including rising food demand. According to usda, off farm costs including marketing, processing, wholesaling, distribution. For every dollar consumers spend on food, the farmer receives just 14. Did you know that farmers and ranchers receive only 15. Farmtoretail price spread and farm share in food supply. It is a place where a community gathers to share and celebrate both the fruits of city gardens and the gardeners that produce them.
Although farming is the primary occupation, a relatively high share of income of 43 percent stems from nonagricultural wages, indicating that nigerias smallholders diversify their income. This figure is for the farm share, however, not the farmers share which only amounts to 6. Nearly every step from farm to retailer has been impacted by surging commodity costs. Usdas economic research services food dollar series recently revealed that in 2016 the farmers share of the food dollar fell to 14. Pdf conventional wisdom appears to support the thesis that declines in usdaa s. Saving money on groceries is easy with dollar tree. Department of agriculture economic research service november 18, 2016 t he f armers s hare did you know that farmers and ranchers receive only 17. Peoria county farm bureau farmers share of the food dollar breakfast, peoria, illinois. Yet, they get a very small portion of the food dollar spent. Over the past 25 years, farmers have received a decreasing share of the consumer food dollar. When packers and processors take such a substantial share of the food dollar, farmers are left to. Aug 16, 2018 for example, between 1998 and 2007, dairy farmers saw their share of the retail milk price drop by 25 percent, while retail prices increased by 40 percent.
One recent study discovered that, for every dollar of sales, direct marketers are generating twice as much economic activity within the region, as. Farmers markets provide one of the only lowbarrier entry points. Farmers receive 11 cents of thanksgiving retail food. Why local food matters agricultural marketing service. Farmers share of the retail food dollar hits new low. Because every farmers agent is also a small business owner, each one has an understanding of some challenges faced by small businesses like. By processing and marketing their own products, tribal producers will capture a greater share of the retail dollar and keep jobs and revenues in the community. Farmers share of the retail food dollar iowa farmers union. The farmtoretail price spread is the difference between what the consumer pays and what the farmer receives.
Retail food prices grew faster than the prices farmers received for agricultural commodities, but economic research has not established that concentration has affected these trends over the past 25 years, farmers have received a decreasing share of the consumer food dollar. The price consumers pay for food is almost invariably higher than that received by farmers. A larger share of the consumers retail food dollar returns to the rural communities where food is grown, but direct. Today, the farmers share of the retail food dollar is down to only 20%. The farmers share of the retail food dollar continues its gradual decline from yeartoyear as food companies take in record profits and family farmers sell their. Some analysts and farm interest groups are concerned that this decline can be attributed, in part, to increasing concentration in agriculture.